Enter Ramco Cements on correction, says Deven Choksey

Deven Choksey of KRChoksey Investment Managers told CNBC-TV18, "Cement is one space where you are likely to see an uptrend continuing and as I see the cycle probably I think it is a three years bull cycle which we have already entered into maybe I think four-five months before or six months before we have already started the cycle. So, I would say that is the beginning of the cycle. Generally, the market would have tendency to peak out little ahead of time and probably it would start rally and it would peak out in the interim process which may probably happen. So, to an extent if I have to believe I think some of the stocks might probably after the results get corrected and that correction could be a meaningful buy opportunity.""Whether that correction could be 15 percent or even 20 percent, I am not too sure. However, if it is around 10 percent kind of a correction happening in some of the cement stocks I think it would be a good buy opportunity. I think the fundamental part of the business is showing great amount of strength," he said. "On one side there is a demand pickup, higher capacity utilisation and on other side I think you have the lower energy cost adding to the margins of the company and in selective pockets the companies are utilising their capacity well above 85-90 percent also. So, to a greater extent I think it means that a better amount of profitability for those companies in the balance sheet. Certainly some of the companies like Ramco Cements are looking attractive but they are sounding little expensive as of now. So, some correction in the price would make meaningful entry into those companies."